What to watch for on Wednesday, June 29:
The US dollar resumed its advance on Tuesday, ending the day with gains against most major rivals amid renewed fears related to inflation and recession. The BC Consumer Confidence Index fell in June to 98.7, its lowest level since February 2021. More relevantly, the survey showed that consumer expectations fell sharply, falling to their lowest level in almost a decade , amid heightened concerns about inflation, which is expected to continue to rise.
Earlier in the day, the president of the European Central Bank, Christine Lagarde, spoke at the Central Banking Forum organized by the ECB in Portugal. She reaffirmed that the central bank intends to raise rates by 25 basis points in July, but added that her team is prepared to raise them at a faster pace if necessary. She also downplayed recession risks, noting that policymakers continue to expect positive growth rates. Furthermore, the ECB’s Pierre Wunsch said he would be comfortable with a 50 basis point hike in September, as 200 basis points of relatively quick hikes are needed.
The EUR/USD pair flirted with the 1.0500 level and settled at 1.0520. The GBP/USD pair is below 1.2200. Commodity-linked currencies fell, hurt by a sour tone from Wall Street. US indices flirting with bearish territory again.
The AUD/USD pair is hovering around 0.6900, while the USD/CAD moves up to 1.2875. The USD/JPY pair is back above 136.00 and is approaching multi-decade highs.
Gold lost some ground and hovered around $1,820 a troy ounce, but crude oil prices continued to rise amid supply concerns. G7 leaders discussed a deal to impose a price cap on Russian oil as crypto sanctions sent crude prices skyrocketing. WTI is now around $111.60 a barrel.
The focus is on inflation as the first-quarter core PCE price index, the Fed’s favorite inflation data, will be released on Wednesday in the US, while the preliminary estimate will be released in Germany. of June CPI data.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
